Before any person starts a private security company in India, a PSARA License is a prerequisite. The Private Security Agency refers to an organization that is engaged in the business of supplying an institution with security guards and other associated services as an alternative to the police. The Private Security Agencies Regulation Act, 2005, popularly known as PSARA, regulates the functioning of private security agencies.
After the enactment of the PSARA (act), it is necessary for a security agency to get License from the State
Controlling Authority Concerned prior to commencing the company and in case of non-enforcement, the law provides for stringent penal consequences. Applications for a license to start a private security agency shall be sent to the competent authority, if applicable to the state. The PSARA License is granted for the purpose of operating in one or more districts in a given state, or for the whole State.
Under the Private Security Agencies Regulation Act, 2005, any individual or corporation wishing to register under PSARA is required to register itself as one of the following business structures listed:
Limited Liability Partnership (LLP)
Private security agencies are those entities involved in the provision of security administrations, including security guard training. The Private Security Agencies Regulation Act, 2005, administers the operation of private security offices, to put it clearly, named ‘PSARA.’ No private security agency can start a business or provide security watch without holding a license.
In order to ensure themselves against different forms of corruption, the interest of private security administrations has gradually risen among the general public. This encouraged private security offices to expand. Protecting private security administrations from solitary/hostile national components and the legislature has driven the creation and operation of such offices through a demonstration called the Private Security Agencies Regulation Act (PSARA), 2005 as it concerns national security.
The legitimacy of the PSARA license is 5 years and can be added for the next 5 years on an installment of the approved expense.
Any Indian business, firm, or group of individuals is eligible for permission from the Private Security Agency. If the entity is an organization, the greater shareholder should also be an Indian at that stage. An Individual, Partnership Company, LLP, OPC Company, or a Private Ltd Company can register to the Competent Authority of the State concerned for a PSARA License or Registration.
Let’s look at the requirements of PSARA License/Registration :
Name and Object of Applicant
The name of the material ought to contain the word Security Services or Related terms that speak to the object of the applicant. The MOA must provide the Provision of Security Benefits as one of the key artifacts on behalf of a business.
Qualification of Director/Principal Officer
They should be a resident Indian for police confirmation of the applicant, have sound monetary standing (we have to present a duplicate of ITR) and should have a complete precursor, and should not have been convicted of any crime.
MOU with Training Institute
The applicant for a PSARA License must enter into an MOU with the preparation of a foundation or organization, as stated by the expert in state control to grant security protection preparation. The readiness standards for former servicemen are relaxed.
National Interest Clause
On the off chance that it is found to maintain ties with association or affiliation, limited by any law or by an administration request to ensure National Security, Public Order, or to maintain any movement biased to National Security, the PSARA License can not be allowed to a person.
Confinement of Foreign Investment
Area 6(2) of the Private Security Agencies (Regulation) Act, 2005, states that a license for a security agency or a PSARA license will not be granted if it is not registered in India, or if it has an owner or a shareholder, accomplice or leader who is not a native of India.
Empowers the security company– after registration, the company obtains legal authority to train security and empowers the business. It automatically increases the productivity of private security organizations to hire more managers and increase training times.
Increases credibility- customers always rely on a certified company. So if your security company gets a PSARA license, it is likely to expand your customer base. It will also refresh the image of your company in the market.
Legal assistance- Once a personal security agency applies to PSARA, it needs to wait six months to take action. After that, the company can begin the process of hiring, training, and placement activities.
Promotes the smooth functioning of the security agency- Some rights such as litigation or litigation only apply to the Private Security Agency licensed by PSARA. It, therefore, supports the agency to provide private security to other organizations and to facilitate various activities easily.
As per state, the process for obtaining a PSARA license differs, and the documents needed for a security agency are described below:
Registration with the service tax department
ESI Registration (Employees State Insurance)
PF(Provident fund) Registration
Registration of establishment under Shops & Establishment
Register under the Contractual labor Act
Affidavit in accordance with the PSARA Act
Security training Affidavit
Proof of ownership for the principal business site or area
Logo for the security agency
ID cards for all employees. Tie-ups for different annual compliances
Character verification document for the employees
All the records below should be in the appropriate format and notarized.
The forms that fall under PSARA’s authority are explained below:
|Forms from 1-9
||Description of the forms
||Verification of Character and Antecedents of the Applicant
||Verification of Character and Antecedents of the Security Guard or Supervisor
||Character and Antecedents Certificate
||A Training Certificate
||Application for the New License or the Renewal of License in order to engage in the Business of a Private Security Agency
||License to engage in the business of the Private Security Agency
||Form for Filing an Appeal
||Register of the Particulars
||Photo ID Card for the Private Security Guard and Supervisor
The initial step in applying for a PSARA license is to collect all necessary registrations, such as Pan Card, TAN Number, GST, PF, ESI, Shops & Establishment Act establishment registration, ITR of each director, etc.
MOU With a Training Institute
The applicant is expected to enter into a Memorandum of Understanding with a recognized training institution to train its guards and supervisors. For this reason, every state has recognized various security training institutes.
Verification by police
The application for police verification shall be submitted by the applicant in Form -I and, where the applicant is a business, organization, or any other association of persons, the applicant shall submit a separate verification form for each person, partner, or director.
Filing of the Application
The application for psara shall be filed before the PSARA regulating authority, which shall then be processed for verification. Upon receipt of the NOC from the police authorities concerned, the regulating authority can either issue the license or deny it on a fair basis.
Time For Issuance of PSARA License
The total time needed to complete the PSARA licensing process is approximately 60 days from the date of the filing of the PSARA application. For a district or five districts or a state, an application for a license may be made. For each state, the application process is different.
RequirementsOf PSARA Licence
The conditions, qualifications, and disqualifications for a security guard are defined by the PSARA. Supervisors must be engaged by the claimant to supervise the work of security guards. A preference must be given to an applicant from the army, navy, or air force with a minimum of three years of experience.
According to the rules, certain enforcement conditions must be met after the PSARA license has been issued. These are included below:
All the security agencies are expected to select and employ supervisors to supervise the performance of security guards they have selected or debuted in the other company.
Such a security agency is required, with the requisite training and expertise, to train its citizens
Preference over others should be provided to ex-defense personnel with three years of experience.
The qualifications, eligibility, and disqualification for a safety guard to be followed have been specifically issued by the PSARA.
The Act protects the eyesight, health status as well as the uniform of the individuals to be hired as a security guard.
For a Single District, the amount of the fee is up to Rs. 5,000
For 5 Districts the amount of the fee is up to Rs.10,000
For an Entire State, the amount of the fee is up to Rs.25, 000(Except in Karnataka the amount of the fee is up to Rs.50,000)
The PSARA License is valid in most states for a period of 5 years from the date of registration, except in Chhattisgarh and Uttarakhand. The states of Chhattisgarh and Uttarakhand have a one-year permit.
The PSARA License can be renewed beginning 90 days before the expiry date.
The proposed director / chief executive officer of PSARA agency or PSARA business itself should not be excluded under the following conditions :
If a person is convicted of an offense committed in connection with any fraud or misconduct committed against him or her in connection with a company), including a debtor
If a competent court convicts a person guilty of a term of imprisonment of not less than two years.
Any person who keeps in touch with any organization or organization prohibited by law because of their activities which could be detrimental to national security or public order or in cases where certain information about that person is available to act is detrimental to national security or public order.
Any such person has already been dismissed or dismissed from the public service on account of misconduct or misconduct.
Any organization that is not registered in India, or has a majority owner or shareholder, partner or director outside of India, or who is not a citizen of India.
MHA excludes Private Security Services from Lockdown Limitations
19 April: In its latest notification, the Ministry of Home Affairs (MHA) exempted a few critical services from the restrictions on lockdowns. Services rendered by private security companies have also been categorized into the category of critical services. However, in order to take advantage of the exemption, such an entity must be approved by PSARA.
Govt of Haryana. Issues 1000 private security agencies’ licenses.
29th July: 1000 private security companies have been authorized by Haryana Police. Since the enactment of the Private Security Agencies Protection Act, 2009, about 137 licenses have been renewed.
A single-window system is being introduced by the Union Home Ministry to grant PSARA licenses to PSAs. The government has taken this step in order to streamline the entire licensing process. These will be the unique characteristics that characterize the new online portal:
Single window system for registering to any UT or state
Payment Gateways for fees for licensing
Combined with the Criminal Justice System Interoperable.
For all of the Security Services Company’s applicants, the online portal would be highly helpful. Easier monitoring of application status, timely disposal of applications, system openness, the ability to raise e queries and obtain a response in return, direct monitoring by the authorities, and cost-effectiveness are the levers of the PSARA portal. This platform would also revolutionize the tiresome process and provide both the applicant and the authorities with ease.
What is meant by the Psara license?
Before any person starts a private security company in India, the PSARA License is a requirement. If the state, the request for a license to start a private security agency is made to the competent authority. The PSARA License is granted for the purpose of operating in one or more districts in a given state, or for the entire State.
Who can apply for a Psara license?
Anyone can apply for a PSARA license; it is not limited to former armed forces servicemen or any other force.
How do I apply for a Psara license?
While applying for the PSARA license you must register under the Private Security Agency Regulation Act, 2005. For more details visit our website Legalraasta or call our expert on 8750008881
What is the cost of a PSARA Licence?
The fees payable can be classified into the following categories:
● For one district it is up to Rs. 5,000/-
● For 2 to 5 districts in a state is up to Rs. 10,000/-.
● The entire state is up to Rs. 25,000/-.
Excluding for the state of Karnataka, where the cost for the entire state is Rs. 50,000/-, the above-mentioned fees are equivalent in India. The government fee may be charged at designated banks through Demand Draft or cash challan.
Which documents are required for a Psara license?
The most important documents are the PAN Card, GST registration certificate, ESI registration, and Shops & Establishment act registration letter.
What Is the Validity of the PSARA Licence?
The license issued under the Private Security Agencies (Regulation) Act, 2005 to employ or have a Private Security Guard is valid in most states for five years. It is true for one year in states like Chhattisgarh, Uttarakhand, though. It is possible to file a renewal of the license 90 days before the expiry of the license.
Who is the Controlling Authority for the PSARA?
Each State Government shall appoint in the Home Department an officer of the Joint Secretary Rank or an equivalent officer to serve under the PSARA as the Controlling Authority.
Will one state’s license be valid in another state?
No, the PSARA license of one state cannot be used to operate in another state. What is the role of PSARA license in FDI (Foreign Direct Investment) in Private Security Agency Business? In the Private Security Agency Market, under the company or LLP type of business organization, FDI of 46 percent is authorized.